Introduction of e-banking service in HSBC bank and its impact on the functioning model of the bank

HSBC Bank

Introduction of e-banking in HSBC Bank and its impact on the functioning model

Preliminary findings and analysis

E-Banking

E-banking can be defined as A process that allows a customer to perform banking transactions online without visiting the institution physically ' It is sometimes used interchangeably with virtual banking online banking and Internet banking . It is a result of demand of sophisticated customer who has formed an entirely new customer base . It is a means of preserving such customers and capturing a greater share of depositor asset . The type

of transactions offered by an e-bank varies from site to site , depending on the policy of the bank and security level of the website

IMPACT OF E-BANKING ON CONVENTIONAL SERVICES

Every technology has it own merits and demerits . Sometimes , innovation is good sometimes its not but it needs firm argument to say what it is Same is with e-banking it both blessing and curse (especially if you have been a victim of phishing and frauds . However , it needs analysis

E-bank is easy to setup . It don 't need big place with heavy furniture It just needs a website with considerable investment in risk management But since it 's not such a brain eating activity to open an account and precede it afterwards , there is a high chance that a customer may move whenever and wherever he finds better dealings and services . So customer loyalty is not guaranteed

Most of the UK banks are happy with their bequest currently , there is possibility that e-banking may shift deposits elsewhere . This will give rise to regain (customer ) fight and heavy investments to retain the current customers . Probably banks many agree to take risks to refund losses

Transactions through e-banking are much cheaper than branch transactions . It is very good to cut-off additional physical branch plan , have a portal instead

The products will be provided by experts in their field . Traditional banks may simply be left with payment and settlement business - even this could be cast into doubt

E-banking will give real tough time in near future because it is difficult for a physical bank to evolve . Because physical branches need heavy investment in advertisement . While for you portal to get famous you need to give metadata and Google - the internet god will do the rest

E-banking is a revolution as it has changed the market same way as ATM did . It has shaped the Supply chain management of the banks

BENEFITS FOR CUSTOMERS

The major benefits of e-banking are

Availability of inquiry and transaction services around the clock

worldwide connectivity

more choice

Easy access to transaction data , both recent and historical

Direct customer control of international movement of funds without intermediation of financial institutions in customer 's jurisdiction

greater competition and better value for money

better tools to manage and compare information

DISADVANTAGES FOR CUSTOMERS

Disadvantages of e-banking are

Overloaded information can lead to misunderstanding

Understanding of terms and services

Phishing , scam , frauds and Pharming

Man-in-the-Middle attacks

ADVANTAGES FOR BANKS

Some major advantages for...